View more on these topics

Govt completes £13bn Northern Rock mortgage sale


The Government has completed selling its £13bn book of former Northern Rock mortgages to US investment firm Cerberus Capital Management.

Cerberus made the final payment of £520m today, concluding the largest-ever financial asset sale by a European government.

The loan book, of around 125,000 customers, is part of NRAM – the state-owned remnant of Northern Rock. Around 240,000 mortgages will remain with NRAM.

This sale affects around 125,000 customers with mortgages and loans, out of a total of 367,000 people on UKAR’s books

The Government has today agreed to sell a portion of NRAM’s mortgages and loans to Cerberus for £13 billion. However, Cerberus in turn has sold £3.3 billion worth of these assets to TSB Bank.

The mortgages were originally owned by Northern Rock and were bought by the government during the financial crisis.

UK Asset Resolution, which manages the loans, then sold them to Cerberus.

A government statement says UK taxpayers will get back more from Northern Rock than was paid to bail them out during the financial crash.

Economic Secretary to the Treasury Harriett Baldwin says: “Today marks another major milestone in clearing up the mess left by the financial crisis, with the government completing the sale of former Northern Rock mortgages.

“Today’s receipt of the final funds from this sale mean that we now have even further confidence that taxpayers will get back more money from Northern Rock than they were forced to put in during the financial crisis.”



Northern Rock loans to be part of biggest securitisation since crash

US investment firm Cerberus Capital Management is set to launch Europe’s biggest mortgage-backed securitisation since the financial crisis. The bond is reportedly backed by £6.2bn worth of mortgages originated by Northern Rock, which had to be nationalised in 2008. Cerberus bought £13bn of Northern Rock mortgages off the Treasury in November. It has already sold […]


Treasury quizzed over Northern Rock assets sale

Treasury economic secretary Harriet Baldwin is facing questions from an influential committee of MPs over the sale of former Northern Rock assets. The Treasury announced a £13bn deal to offload a book of mortgages from the collapsed building society to US-based Cerberus Capital Management in mid-November. However, Treasury committee chairman Andrew Tyrie has now written […]


Treasury offloads £13bn Northern Rock mortgage book

The Treasury has announced a £13bn deal to sell a book of Northern Rock mortgages to US investment firm Cerberus Capital Management. The agreement to sell the mortgages, announced by UK Asset Resolution, means the Government has now disposed of over 85 per cent of the assets of Northern Rock. All proceeds from the sale […]

Graphic content – December; the countries most exposed to a rise in protectionism

President-elect Trump has suggested withdrawing from the North American Free Trade Agreement (NAFTA) and ending negotiations over the Trans-Pacific Partnership (TPP), albeit there is considerable uncertainty over what he will, or even can, do. If one of the main consequences of the election of Donald Trump is US protectionism, it’s worth considering who stands to […]

Why prevention is better than cure

Quoting the famous adage, prevention is better than cure; there are many proactive benefits that can improve wellness in the workplace, decrease stress, increase staff morale and reduce absenteeism, as well as attracting and retaining employees of a higher standard. With a recent study showing that employees in Britain are working below peak productivity, preventative benefits can ensure you address potential health issues or causes of stress at their source and ensure productivity in the workplace remains at an optimum level. With this in mind, how are you using preventative benefits to help keep your workforce happy and healthy?


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm